Runway Calculator

Startup runway is calculated by dividing your current cash balance by your monthly net burn rate. Net burn = total monthly expenses minus monthly revenue. For example, if you have $3,000,000 in the bank and spend $400,000/month with $100,000 in revenue, your net burn is $300,000/month, giving you 10 months of runway. If your revenue is growing, your dynamic runway will be longer because your net burn decreases each month.

After each fundraise, startups should aim for 18-24 months of runway. This gives enough time to hit key milestones and raise the next round from a position of strength. Below 12 months, you should be actively fundraising. Below 6 months is the danger zone — VCs know you are desperate and will offer worse terms. The best time to raise is when you don't need to.

There are two levers to extend runway: increase revenue or decrease expenses. On the revenue side, focus on closing deals faster, increasing prices, or reducing churn. On the expense side, cut non-essential hires, renegotiate vendor contracts, slow hiring plans, or reduce marketing spend with poor ROI. Some startups also extend runway through non-dilutive funding like venture debt, revenue-based financing, or government grants.

Start your fundraise when you have 9-12 months of runway remaining. The typical fundraising process takes 3-6 months from first meeting to money in the bank. Starting at 9+ months gives you time to run a proper process, meet multiple investors, and negotiate from strength. If you wait until you have 6 months or less, investors will sense urgency and you will get worse terms or may not be able to close at all.